Cinnamon areas expand to meet export demands
Ha Noi, Jan. 26 (VNA) -- Viet Nam is to expand its cinnamon areas from 16,000 ha to 50,000 ha in an effort to earn USD 15 million from cinnamon-bark exports by the year 2005, says the Agriculture and Rural Development Ministry.
Between 3,000-5,000 ha of the planned cinnamon areas will be exploited each year to ensure raw material for both export and essential oil production, it says.
Viet Nam also intends to build two more cinnamon oil processing plants - each with yearly capacity of between 50-100 tonnes in northern Yen Bai province and central Quang Nam province.
Cinnamon is a forest product that has become Viet Nam's top export, and each year the country exports 3,000 tonnes of cinnamon bark.
The Ministry says cinnamon trees are largely grown in Yen Bai, Thanh Hoa, Quang Nam and Quang Ngai provinces because they have higher economic value than other plants grown on hilly land and help prevent soil erosion.
Growers can earn between USD 2,000-3,000 from between 700-1,000 kilos of cinnamon bark a hectare. Cinnamon trees are usually planted with other food crops for higher profits, the Ministry emphasizes.
Viet Nam's cinnamon has long been known for its quality and flavour because it is rich in essential oil. The bark has a cinamic acid content of about 75 percent, while its leaf has a content of more than 50 percent.
Both bark and leaf are used to produce essential oil for the food and pharmaceutical industries. About 0.8 per cent of cinnamon's essential oil are contained in its leaf and 2.2 per cent in its bark.
Viet Nam's cinnamon products were previously exported to Eastern Europe and the Middle-East and are now being sold in Japan, the Republic of Korea, Taiwan, Hong Kong and some Western countries at USD 2,000 a tonne.
Previously, cinnamon trees were grown in regions where soil conditions were not quite suitable to and growers were not provided with experience and technology.
Both cinnamon areas and output fell as a result.
Now the Agriculture and Rural Development Ministry is seeking policies and measures to encourage both enterprises and farmers to grow the trees. Incentives include forest-land allocation, soft long-term loans and the provision of know-how.--VNA
